INSURANCE! I Need Some Advice Please...

So did you do a financial analysis to see if that 30% gain is going to actually be a good thing with the $500k insurance requirement and the other added expenses?

 

That's interesting because I use Progressive and when I first started with my own authority in January, a particular shipper required 250k coverage and I had no problem getting it from them.

 

In addition, Progressive insured me with 1,000,000 GL & 1,000,000 auto liability and my new dry van trailer for around 9k a year. I think that some of the high rates guys get are sometimes (not always) related to lower credit scores.

 

Credit score does play a big part in it, as does the domicile location, primary lanes operated in, and commodities transported. There is no comparison between dry van freight and car haul, our car haul rates are 3x that of general freight. As for my brother, his credit is fine, his biggest cause for the high rate other than hauling cars is location, he is less than 80 miles from NYC and 100 from Philly, so even though he declared he does not run into the city his rate still reflects the risk associated with the greater NYC market. As for the difference in cargo coverage, maybe they have different levels for different freight types, I had not thought of that before.

 

I'm an insurance agent and I can confirm that credit does impact the price of insurance (for both commercial and personal lines)